Canada Post customers will now face higher costs for sending mail, as the company implements a significant increase in stamp prices to counter persistent financial challenges.
The 25% price hike, initially proposed last year, took effect on Monday, impacting both domestic and international mail rates.
New Stamp Prices
The cost of a single domestic stamp has risen from $1.15 to $1.44. For stamps purchased in booklets, coils, or panes — which account for the majority of stamp sales — prices have increased from 99 cents to $1.24 each.
Additionally, other services, including U.S. and international letter-post as well as domestic registered mail, have also experienced a 25% price increase on average.
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Reason for the Hike
Canada Post justified the rate adjustments as necessary to address rising operational costs, which have been compounded by declining mail volumes and inflationary pressures.
“Today’s rate change represents a one-time increase of roughly 25%, required to better align stamp prices with the growing cost of providing letter mail service across Canada,” the company stated in a press release.
The company pointed out that while fewer letters are being delivered, the number of addresses continues to grow, driving up operational expenses.
Impact on Consumers and Businesses
The price hike is expected to have a modest financial impact on customers. Canada Post estimates the annual cost increase for the average Canadian household will be $2.26, while small businesses will see an average rise of $42.17 in their yearly mailing expenses.
Financial Struggles Persist
The price increase comes amid ongoing financial difficulties for the Crown corporation. In the third quarter of 2024, Canada Post reported a pre-tax loss of $315 million. This was attributed to a decline in parcel revenue, which fell by 5.8%, and a 9.6% drop in parcel volumes, amounting to six million fewer items compared to the previous year.
The company expects to record another substantial annual loss for 2024, marking its seventh consecutive year in the red.
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Service Recovery After Strike
Following a month-long strike, Canada Post announced last week that domestic operations have returned to full capacity. However, customers are advised to anticipate ongoing delays for transactional mail, neighborhood mail, and international parcels, as stated in a January 7 update.
The price increases reflect Canada Post’s efforts to stabilize its financial position while adapting to the evolving demands of the postal industry.
